Treasurer Dean Martin said Thursday at a news conference. "Unless the Legislature takes some sort of emergency action, we will be issuing IOUs somewhere down the road."

This comes amid reports that the state may be severely undercounted in the census because of the immigration law. That state is clearly in crisis and could look very different in a year or two. Are we seeing the forcible, painful transformation of John McCain's state? (Read more here.)

FROM THE LOS ANGELES TIMES:Congress may reconsider the 2005 energy bill, which provided "billions of dollars in tax and royalty relief to encourage drilling for oil and gas in the Gulf of Mexico and other offshore areas. There was even a $50 million annual earmark to support technical research for the industry." From the article:

On Monday, three senators introduced a bill to reduce tax breaks and royalty waivers they deemed a giveaway to big oil companies.